HUMAN RESOURCES REPORT: Keeping workers healthy

The Seattle area is home to several Fortune 500 companies; it’s ranked among the top 10 most favorable areas for business expansion in the U.S. and, as such, business decision-makers and HR professionals are called to move past just discussing business problems and instead focus on identifying solutions.

A recent Aflac survey identified the top three priorities businesses currently face, all of which are grounded in cost savings: increasing employee productivity, controlling health/medical insurance costs and retaining employees.

While the cost challenge is clear, there are actionable solutions that many business owners may overlook.

Tackling rising costs of health care while protecting a company’s bottom line can increase productivity and turn a company’s human resources assets into a profit lever rather than an expense.

Tax breaks

Identifying ways to provide a service to employees while positively impacting a business’s bottom line is essential, and many companies understand that pre-tax employee investments spell financial gain for both employees and employers.

FICA contributions, for example, are notable personal and business expenses. While the advantage of Social Security is unquestionable, employers can lower FICA contributions by offering additional pre-tax options for employees, including options such as voluntary insurance policies that allow employees to pay for their policies pre-tax, lowering their taxable income. Employers profit by reducing corporate taxes while providing an added benefit to employees at no direct cost to the company.

Encouraging wellness is a proactive way to control future expenses. While the Emerald City is recognized for its active community, employers can still benefit from increasing participation in company wellness programs. Wellness programs promote employee visits to their doctors for preventive visits, leading to an overall healthier lifestyle.

HR professionals can promote wellness programs by including awards programs based on points earned when achieving a wellness goal. An increasing number of HR executives are discovering that some voluntary insurance plans include a wellness benefit that will not only cover the expense of preventive procedures (e.g., mammograms, vaccines, etc.) but may even pay policyholders cash benefits to use it.

Reducing stress

Employee productivity is a key driver to company profitability, and when employees are distracted by financial and health stresses, it can take a toll on business operations. In fact, 47 percent of small-business employees said they were currently dealing with a health or financial problem that impacted their ability to complete their jobs.

Further, roughly 58 percent of small-business owners believe their companies lose 5 percent to 20 percent of productivity because employees are concerned about personal issues they are experiencing. Where possible, finding ways to reduce employee stress also helps business owners raise their bottom lines.

Particularly for Seattle’s small-business owners and their HR staffs, the recent recession has led to an all-encompassing struggle to balance the needs of the business with the needs of employees.

At the root of the business side of the equation is the reality of rising costs, particularly when it comes to health care/medical insurance.

Equally important to maintaining balance is the need to effectively manage, engage and leverage workers. Pursuing solutions, such as tax savings opportunities and wellness programs, can help Seattle companies tackle these challenges and rebound successfully.

ED TEDERS is regional sales coordinator for Aflac in Seattle. He can be reached at 206.388.2358 or edwin_teders@us.aflac.com.